In introductory conversations with new clients, I always ask if they have tried Facebook ads in the past. More than 80% of those clients say that Facebook (and Google) ads simply "don't work," or they feel as if they are too expensive. Furthermore, they find Facebook ads to be both difficult to manage and rather confusing.

However, my experience with owning a coffee business and my years of helping others market their businesses have taught me the opposite: Facebook ads are one of the most inexpensive, consistent and best ways to obtain new accounts.

In addition, many clients don't seem to fully understand how to use Facebook Ads. When contemplating using their marketing dollars to run advertising via a social media platform, most users think that simply "boosting" a post will automatically cause the phone to start ringing.

Consider the alternatives. Referrals are not scalable; if you need more accounts, you cannot simply choose to start getting them. And cold-calling is both expensive and emotionally draining.

Social media ads, however, translate to low risk. You can spend $50 to test an ad, and if it works, great; drop in more. If it doesn't, try something else.

Let's dive into the different approaches.
Three Approaches to Facebook and Instagram Ads

Most people don't really understand Facebook and Instagram advertising, but fully comprehending both approaches is important.

1. Boosting posts: A "boost" helps others see a temporary post/update on your Facebook feed. Use this approach to bypass the platform's algorithm and help your current followers see your latest updates.

2. Ads: Ads reach a specific audience and are best used to drive new leads.

3. Remarketing: Use this approach when an individual visits your website and leaves without completing an action, such as filling out a contact form. Use these remarketing ads to try to get the person to return. Studies reveal that users may interact with a brand seven times before making a purchase, so this is an ideal way to fill gaps.

Boosting Posts

Use the boosting approach to improve customer retention. Even though this approach doesn't function well for driving new business, you can use it successfully to keep your customers loyal. Loyalty leads to cross-selling other products and referrals from your clients. Use boosts to share your latest new products, new machine installations, success stories and company news.Ads

Ads drive new leads. Begin with the Facebook Business Manager.

First, select your audience. If your database contains at least a couple hundred email addresses, upload it to Facebook, and Facebook's Business Manager will create an audience identical to those people. Alternatively, select a handful of different demographics, including job title, location and company size.

Now, create several ads, and test these ads to determine which work best. Offer a freebie like a free coffee tasting or a guide in keeping employees happy (and that feature vending). Make certain your photos are high quality.

Be sure to use a clear call to action. Link your CTAs to a page on your website that continues the conversation created in your ad.

Now, start testing. Assign each ad $75 and compare results. Drop the underperforming ads and give more resources to the best-performing ads.

Retargeting

Use retargeting ads after your website receives several thousand visits per month. This approach works best to minimize a drop-off in site visitors who don't take action. A good approach is to install "Facebook Pixel," so you have the data ready to take on this approach later. Focus first on Facebook Ads before you research the retargeting method.

The Results

If properly completed, Facebook Ads can drive new accounts at a cost of under 5% of the total revenue gained. Even better, you can consistently receive new quality leads.

One of my clients spent five figures on social media in 2017 but realized few results, which meant they planned to never invest in Facebook Ads again. After several weeks of making adjustments to both their ads and their website, they began to drive new sales at an 11% cost, and within a few months, at an 8% cost.

» PETER RUCHTI is the founder of Coffee Marketer, a full-service digital agency helping coffee businesses market their product and get more customers. As a former coffee business owner, he works with other entrepreneurs to strategically market their business using the Internet. Ruchti is online at CoffeeMarketer.com.